One of the ASX’s biggest defence stock winners is back in the spotlight today.
Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been placed in a trading halt after the company launched a capital raising of up to $175 million.
The halt follows another strong session on Friday, when EOS shares rose 4.13% to finish at $8.82 after the company announced a new MARSS contract.
Despite being down around 7% in 2026, the stock remains up 583% over the past year.
The latest update gives investors a lot to digest as EOS looks to build on its much larger order book.
Let’s take a closer look at the release.
EOS taps investors for more cash
In a statement to the ASX, EOS advised it is raising up to $175 million through a placement and share purchase plan.
The larger part is a fully underwritten $150 million institutional placement, with about 18.8 million new shares being issued at $8 apiece.
The issue price represents a 9.3% discount to Friday’s closing price of $8.82.
EOS said the placement will account for about 9.7% of its existing shares on issue.
Eligible shareholders will also be offered the chance to apply for up to $30,000 worth of new shares under the share purchase plan (SPP).
EOS said the placement and SPP shares will rank equally with existing shares.
The company expects the trading halt to lift on Tuesday, when it plans to announce the completion of the placement.
MARSS order book grows
The raising follows another strong update from MARSS, the counter-drone business EOS is buying.
MARSS has landed new orders worth 102 million euros, or about $165 million, from an existing Middle East customer.
Those latest orders lift the MARSS order book to about $217 million. If the acquisition completes, EOS expects its combined order book to rise to $726 million.
That’s a big jump from $459 million at the end of 2025 and $136 million at the end of 2024.
The timing is also worth watching, with EOS expecting up to 80% of the combined order book to convert into revenue across 2026 and 2027.
What to watch next
All eyes will be on how EOS shares trade once the halt lifts tomorrow.
While the cap raising gives the company more cash, it also brings new shares at a discount after a huge one year run.
That means existing shareholders will face some dilution when EOS shares are unfrozen.
Attention will also be turning to whether the MARSS deal completes as expected, and how quickly the order book can turn into revenue.
The post EOS shares halted after huge run as $175 million raising lands appeared first on The Motley Fool Australia.
Should you invest $1,000 in Electro Optic Systems right now?
Before you buy Electro Optic Systems shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Electro Optic Systems wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Why EOS, Megaport, Racura, and Xero shares are racing higher today
- EOS shares rocket as $726 million order book turns heads
- 3 superannuation decisions you’ll regret in retirement
- 3 ASX stocks positioned to benefit from rising global defence budgets
- Down 13% in a week, are EOS shares now too cheap to ignore?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.